timjowers

1989 Credit Crunch Redux

Nice article. How does offshoring/loss of manufacturing base play into the mix? Were CPI and other government numbers being falsified in the 1980's? The reason I ask is I think now the USA has a culture of dishonesty and this has led to common excesses. E.g. the city we live in (Cary, NC) just bankrolled $20M (or maybe as much as $30M) into an enclosed swimming pool. Anyone with any sense knows it would cost less than $1M to build if they used their own money in this area. Clearly $19M to $29M was embezzled somehow. My point is dishonesty is rampant and the numbers being used throughout business and gubermint have no resemblance to the laws of supply, demand, productivity, and capacity. The snap could be much larger/different than in the past.